VR Logo

Do I have to pay tax for short term capital gain from mutual funds?

Short term capital gain on equity mutual fund and debt mutual fund are different from each other

My annual income less than ₹2,50,000 in year. However I have made short term capital gain from mutual fund, will this type of gain be taxable?
- Himanshu Dave

Yes such gains are taxable. But the rate of tax will depend on whether you own an equity or debt mutual fund. Debt mutual funds qualify for long term capital gains tax if held for more than 36 months. If these funds are sold before three years, gains are added to the income and taxed at your applicable income tax slab.

Equity mutual funds qualify as long-term capital assets if held for 12 months. If you sell your equity investment before a year, you will have to pay a short-term capital gains tax of 15 per cent. If you sell after that, the gains are exempt from tax under current income tax laws.

Post Your Query